What investment strategies among high-net worth individuals can also be successful for average investors?
Many high-net worth individuals have access to all kinds of “alternative investments.” In many cases buying precious metals, hedge funds, real estate and investing in private equity can mean the money is less liquid and, at the same time, can be exposed to huge swings in value. If an individual is interested in broadening his or her diversification to these areas, he or she should consider using the many no-load mutual funds or exchange-traded funds that are available from most discount brokerage firms. What investment strategies among high-net worth individuals would you caution average investors from being involved in? I would advise against the lure of complex investments, such as private placements, master limited partnerships or hedge funds. There can be great benefits from keeping an investment portfolio simple. It can be just as rewarding to stay with investments that are easily understood. What’s your take on what’s going on with the estate tax? What do you hope to see happen?
